Intro
things needed to survive and live comfortably vs. things that you don't need to live
needs vs. wants
Amount of earnings before payroll deductions vs. amount of earnings minus payroll deductions
gross pay vs. net pay
Things in addition to salary that you get from your job - retirement plans, health plans, etc...
benefits
why do we pay taxes?
Determines percentage of gross pay which will be witheld from taxes
W-4
What does SMRT stand for?
S - specific
M- Measurable
R - Realistic
T - Time-bound
your gross pay is $135 and you state tax rate is 10%. What is your total net pay?
$121.50
retirement savings plan sponsored by an employer
401(k)
What does IRS stand for? What does it do?
Internal Revenue Service. Responsible for collecting federal taxes.
Proves you are eligible to work in the U.S.
I9
different lengths of goals and their names
Short-term, one year or less
Middle-term, one to five years
Long-term, 5 years or more
different types of pay:
wages, overtime pay, salary, tips, commission
Individual retirement plan set aside after taxed income
Roth IRA
Types of mandatory deductions
federal income tax, state income tax, social security tax, medicare tax, and local income tax
Filled out by employer and shows taxable income
W2
least amount possible to be payed
minimum wage
Employer funded plan. Employee receives regular payments on retirement
pension
Types of voluntary deductions
insurance, savings, retirement plan contributions, donations
form that individual taxpayers use to file their annual income tax returns
1040
overtime pay rate
1.5 times normal amount
charging taxes on things such as alcohol and cigarettes
Excise tax/Sin tax
What is the difference between tax aversion and tax evasion?
Reducing taxes by claiming legitimate tax deductions and credits vs. failing to declare all income or falsifying deductions, adjustments or credits